Even though Ahmed Abbasi’s first paper on marketing was runner up for the best 2020 article published in the most prestigious journal in the field, Abbasi is not a marketing or sales expert.
Instead, Abbasi peers into the future of artificial intelligence (AI) and tries to figure out what all this data can tell us about the human condition. The Joe and Jane Giovanini Professor of IT, Analytics, and Operations in the Mendoza College of Business even named the lab he co-directs after HAL, the seemingly omniscient computer in Stanley Kubrick’s “2001: A Space Odyssey.” Abbasi employs the acronym for his Human-centered Analytics Lab rather than a God-like intelligence.
Funded by the National Science Foundation, HAL has used big data and AI to solve problems ranging from creating early warnings about drug interactions and car safety to improving the natural language processing of call center computers, including how to remove unintentional bias in the algorithmic models.
The analysis found that consumers prefer social media and product sites for hedonic purchases, especially early in their journey. For utilitarian purchases, they are more likely to use search engines and reviews early and deal sites later.
“We find that hedonic purchases utilize social media up to 10% more than their utilitarian counterparts throughout the purchase cycle and are less likely to switch retailer brands,” the report said.
“The reason this is so interesting from a theory standpoint is that this purpose angle can illuminate some interesting patterns,” Abbasi says. “But then also practically, if I’m a product manager or an ad agency that’s been asked to drive traffic for one of these retailers, having these insights can help inform my ad space or my marketing strategy in terms of how customers engage in these different journeys.
“Because the key thing we find is that what matters is very different depending on the purpose,” he adds.
The findings also have practical outcomes for retail strategies. To sell hedonic products, retailers should embrace social media, monitor on-site product views and consider social coupons that feature experiential aspects of their product. Managers selling utilitarian products should prioritize search-engine marketing to get on customers’ radar early and invest in automated benchmarking tools to keep their products competitive late. Selling both types of products for Black Friday should begin earlier to align with the journey customers take to get to purchase.
Abbasi said the kinds of analytics performed for marketing are not so different from his other projects. The journey and channels may be different, but similar analytics can still yield valuable insights. For instance, he has analyzed multiple online channels to amass auto user reports that could identify problems like sticky pedals in certain car models.
“What we find is, you can use this information not just to understand the journey and the steps, but rather as a signal,” he says. “Is it an early warning? We’re finding that you can actually detect these events years in advance, compared to the federal databases.”
The similarity in analysis framework may explain how Abbasi’s first paper in the field of marketing became a finalist for the Hunt/Maynard Award, which recognized the 2020 Journal of Marketing paper that made the most significant contribution to marketing theory. He could have stuck with what he knew, but his curiosity opened new doors.
“It’s very easy to succumb to our availability bias and just focus on the data we have,” Abbasi says. “But I think this paper shows we really have to keep the focus on ‘why’ questions.”Related News & Stories
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